SUSTAINABILITY
that more help is needed : “ International organisations and governments need to invest to help diminish the risk layer regarding investment in emerging markets . This would provide security for private sector firms , who may want to invest in renewable technology but need risk alignment with developed markets ' risk and returns .”
Issue of energy security brings renewed attention European countries in particular are currently wrestling with energy insecurity , prompted in part by the war in Ukraine . At the outset of the invasion , Germany was heavily reliant on imported oil and gas : more than 90 % of its natural gas supply was imported , to note an example . That situation has since changed , with the German government working diligently to diversify its energy mix over the last 12 months . As countries race towards greater energy security , local production – including renewables – is taking centre-stage .
“ The transition towards green energy is a double-edged sword during these times of energy insecurity ,” explains Mike Penrose . “ On the one hand , the recent acceleration towards renewable energy is a positive thing for the long-term health of society and the planet . But in the short-term , there are farreaching social consequences of rising fossil fuel prices and the cost of the transition to a lower dependency on fossil fuels , causing hardship for millions of people .
“ We need to strike a balance between our energy transition goals and the ongoing welfare of global citizens , making the journey towards net-zero affordable and sustainable for everyone . This should be top of the agenda for all parties involved , especially investors and financial institutions .”
Kevin Chin believes there are bigger
lessons to be learned from the energy insecurity we ’ ve recently been witnessing : “ The world must consider the importance of energy independence and energy system reliability . Part of the answer will no doubt come from greater investment to accelerate the availability of renewable energy infrastructure – including , critically , adequate energy storage infrastructure to cope with the increasing intermittency of electricity supply as the grid transitions .”
Banks and FIs must look at their financed emissions Financed emissions , otherwise known as Scope-3 emissions , are one of the